• We need your support!

    We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
    Click here to Donate Now (View Announcement)

Economics, Accounting & Business: Post your doubts here!

Messages
35
Reaction score
2
Points
18
need to add the scrap value to the investment again??

yes dats the formula for ARR! if they have given working capital increase it wud be

average profits/0.5(intial investment+scrap value)+working capital


note dat u dont apply the o.5 for the working capital
 
Messages
740
Reaction score
7,250
Points
503
ANYONE KNOW THE REASON FOR THIS! PLZ HELP

Material Y should be valued at current purchase price and material X at net realisable value.
Because Material X is used to make most of the products...why X is used fr one product....hence must be valued at its lowest! =)
 
Messages
35
Reaction score
2
Points
18
Material Y should be valued at current purchase price and material X at net realisable value.
Because Material X is used to make most of the products...why X is used fr one product....hence must be valued at its lowest! =)

IN wat part of stock valuation notes does it come? coz i have nly heard dat u value stock at lower of cost or NBV?
 
Messages
318
Reaction score
1,937
Points
253
IN wat part of stock valuation notes does it come? coz i have nly heard dat u value stock at lower of cost or NBV?

sharfa riyaz is question is outdated in the sense they did use IAS-2

Always remember that inventories are valued at cost or nrv whichever is lower
 
Messages
35
Reaction score
2
Points
18
sharfa riyaz is question is outdated in the sense they did use IAS-2

Always remember that inventories are valued at cost or nrv whichever is lower

thanks alot! even i thought of dat! coz its 2004 paper! so if we get a question like this we take cost or NBV which ever is lower ryt?
 
Messages
153
Reaction score
40
Points
38
Material Y should be valued at current purchase price and material X at net realisable value.
Because Material X is used to make most of the products...why X is used fr one product....hence must be valued at its lowest! =)
the material used for production of only one product should be valued at the lowest ?? i never heard abt it
 
Top